Comment on the following statement: "Diminishing returns occur when total output falls as additional units of labor are combined with fixed inputs in the production process."
What will be an ideal response?
The statement is false. Diminishing returns occurs when marginal product falls as additional units of labor are combined with fixed inputs in the production process.
You might also like to view...
Refer to the above figure. Unexpected expansionary monetary policy has caused the aggregate demand curve to shift to AD2. In the short run
A) the unemployment rate can increase or decrease depending upon how much the LRAS will shift. B) the unemployment rate will be smaller than the rate before the expansionary monetary policy. C) the unemployment rate will be larger than the rate before the expansionary monetary policy. D) the unemployment rate will be the same rate as before the expansionary monetary policy.
In this type of arrangement, any balances above a certain amount in a corporation's checking account at the end of the business day are "removed" and invested in overnight securities that pay the corporation interest
This innovation is referred to as a A) sweep account. B) share draft account. C) removed-repo account. D) stockman account.